Techniques are provided for reduction of echo in a received audio signal based on infinite impulse response (IIR) acoustic echo cancellation in the frequency domain. A methodology implementing the techniques according to an embodiment includes estimating an echo path transfer function associated with the received audio signal. The received audio signal includes a combination of a speech signal and a reference signal modified by the echo path transfer function. The estimation employs an IIR filter and a finite impulse response (FIR) filter, both of which operate in the frequency domain. The IIR filter is configured to model longer term echo components and the FIR filter is configured to model shorter term echo components. The method further includes applying the filters to the reference signal to generate an echo correction signal which is subtracted from the received audio signal to reduce the echo and generate an estimate of the speech signal.